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Kiwis eye equity release

SENTINEL, a New Zealand finance company, is seeking a partner to enter Ireland’s equity release mortgage market aimed at elderly homeowners looking to raise cash for day-to-day expenses, nursing care or home improvements.

The firm, which is the leading player on its home turf, will go head-to-head with Shared Home Investment Plan (Ship), Residential Reversions Limited (RRL) and Bank of Ireland in a market that remains relatively underdeveloped compared with Britain, North America, Australia and New Zealand.

While these schemes have been criticised for taking advantage of people when they are at the most vulnerable period of their lives, James Wyse, the managing director of RRL, said: “It’s another form of financial engineering. Half of the people who come to us are looking to improve their lifestyles and the other half want to set their children up.”

There are two types of product currently available in the Irish market. Bank